BIDEN ADMIN TO START WRITING COLLEGE ACCOUNTABILITY RULES: The Biden administration this month is planning to finally put pen to paper on key parts of its college accountability agenda, drafting new regulations that restrict how and when colleges and universities — particularly for-profit institutions — can access federal funding. — The Education Department's higher education priorities over the first year of the Biden administration have largely been on doling out billions of emergency pandemic relief to colleges and overhauling an array of student loan programs (like Public Service Loan Forgiveness and income-based repayment). But the administration is now turning its attention to how the Education Department directly regulates higher education as it embarks on a new round of negotiated rulemaking in the coming weeks. — For-profit colleges in cross hairs: On the campaign trail, Biden promised that he'd force for-profit colleges to "first prove their value" before getting access to federal funding. The Biden administration notched an early education policy achievement in its American Rescue Plan Act, which included a provision changing the "90/10 rule" that restricts the share of revenue that for-profit colleges can derive from the federal government. — Implementing the changes Congress made to the 90/10 rule will be a key part of the upcoming negotiated rulemaking sessions. As part of a bipartisan compromise in the Senate, the American Rescue Plan Act delayed implementation of the tighter restrictions on for-profit colleges until 2023 and also left it up to the Education Department to decide key details of the policy. — One expected fight will be over how broadly the Biden administration chooses to define which "federal education assistance funds" count as part of the 90/10 rule's cap on federal funding to for-profit colleges. For-profit colleges have called for a narrow interpretation — such as including GI Bill education benefits and Pentagon Tuition Assistance funding — but critics of the industry and Congressional Democrats are seeking to include other federal sources of funding in the calculation. — Another open question: How quickly will the Biden administration seek to punish for-profit colleges that run afoul of the new 90/10 rule? Critics of the industry want to see the rule implemented immediately but the colleges are seeking a transition period. — Gainful employment: The Biden administration has said it wants to reinstate a version of the Obama-era "gainful employment" rules that cut off federal aid to career college programs that left students with large amounts of debt compared to their earnings — and also required a slew of disclosures to prospective students about the outcomes of those college programs. Former Education Secretary Betsy DeVos tossed out the rules in their entirety, arguing that they were too heavy-handed and unfairly targeted for-profit colleges. — There's already some progressive pushback on how the Biden administration has approached the "gainful employment" issue so far. Progressives have been irked that the Biden administration has continued to defend the legality of DeVos' repeal of the gainful employment in court and hasn't moved more quickly to reinstate the Obama-era rules. — Education Department officials have insisted that they believe they must go through an entire new rulemaking process to reinstate the Obama-era rules. And they've also argued in court that the department in any event is ill-prepared to immediately return to those rules. — But the Biden administration hasn't yet tipped its hand on how it wants to rewrite the "gainful" rules — and whether they'll use the Obama-era policy as a starting point or seek a new direction entirely. Those details will start to emerge in the coming weeks. — Also on the negotiating table: The Education Department is planning to take up changes to how it approves for-profit college conversions to non-profit status as well as the financial standards that all for-profit and non-profit colleges must meet to receive federal student aid. Some colleges have long complained that the Education Department's rules, which are designed to prevent federal funding from flowing to colleges that are on the verge of collapse, don't accurately assess the nuances of their finances. — What's next: The Education Department this week is expected to release the names of individuals who will comprise the rulemaking committee that will meet over the coming months to hash out the details of the regulations. Negotiations around the (virtual) table begin on Jan. 18. The Education Department has already slated two additional sessions beginning Feb. 14 and March 14. IT'S MONDAY, JAN. 10. WELCOME TO WEEKLY EDUCATION. Please send tips and feedback to your host at mstratford@politico.com or to my colleagues: Juan Perez Jr. at jperez@politico.com, Bianca Quilantan at bquilantan@politico.com, and Jessica Calefati at jcalefati@politico.com. Follow us on Twitter: @Morning_Edu and @POLITICOPro. |
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